ANTHRACITE BALANCED: Shareholders' Final Meeting Set for May 31CA PARTNERS: Shareholders' Final Meeting Set for June 9CONTINENTAL TRUSTEES: Fitch Affirms 'BB+' Rating on Jr. Sub. NotesEVENING STAR: Shareholder to Hear Wind-Up Report on June 13GLG EMERGING: Members' Final Meeting Set for June 2

BUENOS AIRES: S&P Rates Up to US$890MM Sr. Unsec. Notes 'B-'------------------------------------------------------------S&P Global Ratings assigned its 'B-' issue-level rating on theCity of Buenos Aires' (CABA: B-/Stable/--) senior unsecured notesfor up to $890 million. The amortizing notes will be denominatedin dollars, and the city will use the proceeds for its ambitiousinfrastructure plans and for the refinancing of its debt,including the offer to purchase up to $390 million of theoutstanding 9.95% notes due 2017 (Bono Tango Series 10). S&Pexpects that CABA will pay any remaining outstanding Series 10notes in accordance to their original terms and conditions.

S&P don't view this new debt as harmful to the city's financialprofile. S&P expects that CABA's low debt, despite significantexposure to the exchange rate risk, will continue to support thecity's credit profile. Including the $890 million issuance, S&Pexpects CABA's debt to reach ARP44.5 billion by the end of 2016,or nearly 34% of its operating revenues. Although the city's debtwill increase in nominal terms from ARP31.4 billion as of the endof 2015, debt--relative to operating revenues--will fall from 39%.This stems from S&P's expectations that higher inflation willcompensate for the impact of new net borrowings and currencydepreciation, which S&P expects to be less than in 2015, on CABA'soperating revenues.

Additionally, as per S&P's criteria "Rating Implications ofExchange Offers and Similar Restructurings, Update," publishedMay 12, 2009, S&P don't consider the offer to purchase the Series10 notes as tantamount to default because S&P believes it doesn'tmeet the conditions to be considered as such. Given that the cityis offering a cash premium of $1,055 for every $1,000 to purchasethe notes, plus accrued and unpaid interest, the offer introducesan incentive to compensate investors for their loss of future cashflows.

The 'B-' foreign currency rating on CABA is one notch below its'b' stand-alone credit profile (SACP). The SACP isn't a ratingbut a means of assessing the intrinsic creditworthiness of a localand regional government (LRG) under the assumption that there isno sovereign rating cap. The SACP reflects the combination ofS&P's assessment of an LRG's individual credit profile and theinstitutional framework in which it operates. All ArgentineanLRGs operate under the institutional framework that S&P views asvery volatile and unbalanced. However, S&P considers that thecity's credit profile is stronger than those of its domesticpeers. According to the latest data, CABA's GDP per capita is3.2x greater than that of Argentina. In addition, the city hasconsistently posted operating surpluses above 8% of operatingrevenues, which it's likely to do so again in 2016. Such highoperating surpluses have allowed CABA to maintain higher capitalexpenditures (capex) than those of its domestic peers. Highcapex, budgetary flexibility thanks to own-source revenues thatwill likely account for more than 75% of total revenues in 2016,and a strong credit culture support the city's creditworthiness.In addition, the strong political ties between the city governmentunder mayor Horacio Larreta, and the national government led by aformer mayor of Buenos Aires, Mauricio Macri, bolster CABA'scredit quality, in S&P's opinion.

The stable outlook on the city mirrors the stable outlook on thesovereign's local currency rating. The outlook reflects reneweddialogue between the city--as well as other Argentinean LRGs--andthe federal government about tackling fiscal and economicchallenges in the short to medium term. If S&P was to raisetransfer and convertibility (T&C) assessment and local currencyrating on the sovereign, an upgrade of the city is possible withinthe next 12 months. On the other hand, S&P could downgrade CABAif the T&C assessment deteriorates or if S&P was to lower thesovereign local currency rating. However, according to S&P'sbase-case for 2016, such a scenario is unlikely.

The bond will be issued up to USD890 million under a USD2.3billion EMTN Program. This note is denominated in USD, to accruea fixed interest rate to be determined at issuance and payable ona semi-annual basis. The maturity of the bond is estimated to beof 10 years, with equal annual payments of USD296.7 million in thelast three years. The bond will be a senior unsecured obligationof the CBA.

The city intends to use the net proceeds of the new issue underthe Series 12 Notes for infrastructure investments and for therefinancing of Series 10 Notes in up to USD390 million, out of theUSD415 million due on March 1, 2017.

KEY RATING DRIVERS

Fitch has assigned a long-term rating of 'B(exp)' in line with theissuer's long-term rating ('B'/Stable Outlook). The rating of theCBA considers its adequate fiscal and budgetary performance,generating good operating margins that averaged 12.9% of itscurrent revenues over the last five years despite the pressures onoperating expenditures. The CBA maintains manageable debt andsustainability ratios and it is Argentina's primary political andeconomic center. The main constraints of the rating are thesovereign rating and the CBA's unfavorable debt structure, having92.1% in unhedged foreign currency.

At year-end 2015, debt grew by 71.7% compared to 2014, due tohigher debt on government securities and the effect of currencydevaluation. According to preliminary information, outstandingdirect debt totalled ARS31,432.3 million, which represented 38.9%of current revenues and 3.6x of the current balance. In Fitch'sopinion, even though the growth was significant, debt levels arestill appropriate. Also, considering the use of authorized debtfor 2016, debt will represent 32% of budgeted operating revenues.

The city's direct debt has been increasing since 2009, largelyassociated with the execution of investment on public works in amacroeconomic context of limited capital sources. Nonetheless,the CBA's debt profile is still in line with its current ratinglevel. On average, during the last five years, CBA's capitalexpenditure represented 14.7% of its total expenses. The newissuance will alleviate debt service pressure in the short termand extend 2017 maturities towards a longer and more manageableterm, according to the CBA's projections.

BUENOS AIRES: Moody's Rates Up to US$890MM Sr. Unsec. Notes 'B3'----------------------------------------------------------------Moody's Investors Service has assigned a B3 (Global Scale foreigncurrency) rating to the Senior Unsecured Notes to be issued by theCity of Buenos Aires for up to $US890 million under its Medium-Term Note Program. The ratings are in line with the City's longterm foreign currency debt rating, which carry a stable outlook.

RATINGS RATIONALE

The proposed Notes issuance (will be Series 12 Notes) has beenauthorized by the City's Laws Nß 5.014, 5.236 and 5.492. The Cityof Buenos Aires will use the proceeds of the Notes for twoobjectives. Firstly, it will offer to purchase up to $US390million of outstanding principal of 9.95% Series 10 Notes due 2017and if there were some remaining funds within that amount, theywill be used to fund infrastructure works for the Ministries ofEducation and Health and to the acquisition of medical equipment.Secondly, the City will use an amount up to $US500 million toexecute its general infrastructure plan for the current year.

The Notes, which constitute direct, general, unconditional andunsubordinated obligations of the City. They will be denominatedand payable in US dollars with an expected maturity of 10 years,amortization in three annual installments and will pay fixedinterest rate on a semi-annual basis. The Notes will be subject tothe English Law.

The assigned ratings are based on preliminary documentationreceived by Moody's as of the rating assignment date. Moody's doesnot expect changes to the documentation reviewed over this periodnor anticipates changes in the main conditions that the Notes willcarry. Should issuance conditions and/or final documentation ofthese Notes deviate from the original ones submitted and reviewedby the rating agency, Moody's will assess the impact that thesedifferences may have on the ratings and act accordingly.

WHAT COULD CHANGE THE RATING UP/DOWN

Given the strong macroeconomic and financial linkages between theGovernment of Argentina's and Sub-sovereigns economic andfinancial ratings, and upgrade of Argentina's sovereign bondsratings and/or the improvement of the country' operatingenvironment could lead to an upgrade of the City of Buenos Airesratings. Conversely, a downgrade in Argentina's bond ratingsand/or further systemic deterioration or idiosyncratic risksarising in the City of Buenos Aires --such as a rapid increase inthe debt to total revenues ratio of the City-- could exertdownward pressure on the ratings assigned and could translate into a downgrade in the near to medium term.

The securities for this transaction have not yet been placed inthe market. The transaction is pending approval from the ComisionNacional de Valores, if any assumption or factor Moody's considerswhen assigning the ratings change before closing, the ratings mayalso change.

The rated securities are payable from the cash flow coming fromthe assets of the trust, which is an amortizing pool ofapproximately 5,490 eligible personal loans denominated inArgentine pesos, bearing fixed interest rate, originated byPvcred, a financial company owned by Comafi's Group in Argentina.Only the installments due after July 31, 2016 will be assigned tothe trust.

The VRDA TV will bear a floating interest rate (BADLAR plus400bps). The VRDA TV's interest rate will never be higher than 40%or lower than 24%.

The transaction has initial subordination level of 32.0% for theVRDA TV, calculated over the pool's principal balance as of July31, 2016. The subordination level will increase overtime due tothe turbo sequential payment structure. The transaction will havea grace period for principal and interest payment until September2016.

The transaction also benefits from an estimated 44.1% annualexcess spread, before considering losses, taxes or prepayments andcalculated at the caps of 40% for the VRDA TV.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors that may lead to a downgrade of the ratings include anincrease in delinquency levels beyond the level Moody's assumedwhen rating this transaction. Although Moody's analyzed thehistorical performance data of previous transactions and similarreceivables originated by Pvcred, the actual performance of thesecuritized pool may be affected, among others, by the economicactivity, high inflation rates compared with nominal salariesincreases and the unemployment rate in Argentina.

Factors that may lead to an upgrade of the ratings include thebuilding of credit enhancement over time due to the turbosequential payment structure, when compared with the level ofprojected losses in the securitized pool.

Loss and Cash Flow Analysis:

Moody's considered the credit enhancement provided in thistransaction through the initial subordination levels for eachrated class, as well as the historical performance of Pvcredportfolio. In addition, Moody's considered factors common toconsumer loans securitizations such as delinquencies, prepaymentsand losses; as well as specific factors related to the Argentinemarket, such as the probability of an increase in losses if thereare changes in the macroeconomic scenario in Argentina.

These factors were incorporated in a cash flow model that takesinto account all the relevant features of the transaction's assetsand liabilities. Monte Carlo simulations were run, whichdetermines the expected loss for the rated securities.

Moody's analyzed the historical performance data of previoustransactions and similar receivables originated by Pvcred, rangingfrom July 2014 to April 2016. Moody's has observed a weakerperformance of Refis loans compared to Unregulated Pvcred Loans.In addition, Moody's has observed a weaker performance of OpenMarket Loans compared to Existing Loans.

Moody's notes that there is significant uncertainty around keymacroeconomic variables in Argentina, including inflation rates,salary increases compared to inflation, and economic activity,which have an impact on future performance of this transaction.

In assigning the rating to this deal, Moody's assumed a lognormaldistribution of losses for each one of the different securitizedsubpools: for the loans of Existing Clients, a mean of 18%; forloans of Open Market, a mean of 35% and for the "Refinanciados"loans, a mean of 41% with a coefficient of variation of 60% foreach of the three subpools. Also, Moody's assumed a lognormaldistribution for prepayments with a mean of 35% and a coefficientof variation of 70%.

Servicer default was modeled by simulating the default of BancoComafi as the servicer consistent with its current rating ofB3/Baa1.ar. In the scenarios where the servicer defaults, Moody'sassumed that the defaults on the pool would increase by 20percentage points.

The model results showed 1.2% expected loss for Class A FloatingRate Debt Securities and 26.0% for the Certificates.

Moody's also evaluated the back-up servicing arrangements in thetransaction. If Pvcred is removed as collection agent, BancoComafi will be appointed as the back-up collection agent.

Stress Scenarios:

Moody's ran several stress scenarios, including increases in thedefault rate assumptions. If default rates were increased by 4%from the base case scenario, the ratings of the Class A FloatingRate Securities would likely be downgraded to B1 (sf), while thatof the Certificates would remain unchanged

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BOLIVIA: S&P Affirms 'BB' Sovereign Credit Ratings--------------------------------------------------S&P Global Ratings affirmed its 'BB' long-term foreign and localcurrency sovereign credit ratings on the Plurinational State ofBolivia. The outlook remains stable. At the same time, S&Paffirmed the 'B' short-term foreign and local currency sovereigncredit ratings on Bolivia. In addition, S&P affirmed its transferand convertibility assessment at 'BB'.

RATIONALE

The ratings on Bolivia reflect its strong external balance sheet,low debt burden, and favorable debt profile. They also reflectBolivia's weak public institutions, low per capita income(projected to exceed US$3,500 in 2016), weakening fiscal profile,and fiscal and export dependence on commodities, which can besubject to volatile prices. Hydrocarbons (mainly natural gas) andminerals account for the bulk of the country's exports.

The Administration of President Evo Morales has made dramaticpolitical and economic changes in recent years, shifting politicalpower toward Bolivia's large indigenous population and economicpower to its public sector. However, Bolivia's publicinstitutions remain comparatively weak and susceptible topoliticization, and economic policymaking is highly centralized.Morales' political party, Movimiento al Socialismo (MAS), holds atwo-thirds majority in Congress, which helps the government toimplement its policy agenda. However, MAS includes many well-organized social groups, potentially making it difficult for thegovernment to adjust fiscal and other policies in the event of aprolonged period of low commodity prices.

In contrast with some commodity-producing countries, Bolivia haschosen to use aggressive countercyclical fiscal and monetarypolicies to sustain economic growth during the downturn in prices,drawing upon its ample public-sector liquid assets (which it hadaccumulated during the commodity boom years). As a result, GDPgrew 4.8% in 2015 and is likely to grow more than 4% this year (orjust above 2.4% in per capita terms), just below the country'saverage GDP growth rate of 5% since 2006. Bolivia's per capitaincome has more than doubled since 2007.

GDP could grow around 3% or more in the next three years(equivalent to 1.3% in per capita terms), reflecting thegovernment's plans to boost public-sector investment in strategicsectors of the economy (especially petrochemicals, energy, andinfrastructure) while running fiscal and current account deficits.Uncertainty about energy prices, coupled with the government'sability to adjust the level of public-sector investment, addsvolatility to S&P's GDP growth forecast for the country in thenext three years.

A potentially prolonged period of low energy prices could create adifficult trade-off between the need to contain the rise in publicdebt and maintain an adequate level of foreign exchange reserveson the one hand and the political goal of sustaining GDP growththrough continued high public-sector spending on the other. Thesuccess of the government's strategy depends on continuedpragmatism in encouraging private-sector investment in energyexploration and production, and on avoiding substantial erosion inits external balance sheet and currently low debt burden.

S&P expects that Bolivia's natural gas reserves will likelyincrease in the next two to three years because of continuedexploration and development. Production from existing fields maypeak in 2019 before declining gradually, highlighting theimportance of advancing rapidly with exploration and developmentof new reserves. S&P expects that Bolivia will continue to exportstable to moderately higher volumes of natural gas to Argentinaand Brazil while expanding the use of natural gas for domesticresidential consumption and power generation, and for newpetrochemical plants. Otherwise, the prospect of declining gasexports and lower long-term GDP growth could lead to a lowerrating.

Bolivia will likely have substantial current account deficits(CADs) in 2016 and next year, eroding the strong external positionthat it had acquired as a result of current account surplusesduring 2003-2014. However, S&P expects the country's externalposition to remain relatively robust thanks to ample externalassets and low external debt. A sharp drop in exports drove thetrade balance into a deficit of around 4% of GDP in 2015,resulting in a CAD exceeding 6% of GDP. The combination of lowenergy prices and the government's policy of sustaining GDP growthvia public-sector investment is likely to contribute to anotherCAD approaching 6% of GDP in 2016. Both the trade and currentaccount deficits are likely to narrow over the next two to threeyears, with the CAD likely approaching 3%-4% of GDP, based on amodest increase in gas export volumes and prices, along with somemoderation in import demand resulting from less expansionaryfiscal policy.

Despite these negative trends, S&P expects Bolivia's externalposition will remain relatively strong. S&P projects net public-sector external debt to be -60% of current account receipts (CAR)in 2016 and net banking sector external debt to be -22% of CAR.S&P expects gross external financing requirements to be 59% of CARand usable reserves in 2016 and remain around 60%-70% in the nextthree years. The country's narrow net external debt is projectedto be -64% of CAR in 2016 and may decline below -50% in 2017.

Bolivia is subject to volatility in its terms of trade (the pricesof exports compared with prices of imports). The country's stableexchange rate vis-a-vis the U.S. dollar since 2011 has anchoredinflation expectations and underpinned confidence in the localcurrency, a significant achievement in a country historicallyplagued with monetary instability and a high level of dollar-denominated assets and liabilities in its financial system.However, a potentially prolonged period of currency appreciation,combined with fiscal policies that contribute to a trade deficit,could gradually erode the country's external assets. S&P expectsthat the government will make timely adjustments to policies toavoid large and persistent imbalances that substantially weakenits external profile.

S&P expects an erosion of Bolivia's fiscal profile in the comingcouple of years. Bolivia had its first nonfinancial public-sectordeficit (of 3.4% of GDP) in 2014 after eight years of surpluses.The nonfinancial public-sector deficit increased to around 7% ofGDP last year and may reach 6%-7% of GDP in 2016-2017. As aresult, general government debt could increase by over 4% of GDP,on average, during 2016-2019, more than S&P had previouslyassumed. S&P projects net general government debt could approach20% of GDP in 2016 and continue climbing toward 28% in 2018.Interest costs will likely rise to 3.6% of general governmentrevenue in 2016 and exceed 4% in the next two years.

Greater economic stability, as well as regulatory measures andhigher reserve requirements, has contributed to declining dollar-denominated assets and liabilities in the financial system inrecent years, improving the effectiveness of monetary policy.Dollar-denominated deposits fell below 17% of total deposits bythe end of 2015 from 94% in 2002, and dollar-denominated loansfell below 5% of total loans from 97% during the same period. Thereported capital adequacy ratio of the banks exceeds 12%, anddeposits fully fund the loan book. Nonperforming loans are around1.5% of total loans and are fully covered by loan loss provisions.The financial system is likely to remain a net external creditorin the coming three years.

Bolivia's financial services law gives the government powers toset interest rates and to direct bank lending to specific sectors,including a minimum of 60% of loans to "social housing" and to"productive sectors" of the economy. The long-term health of thefinancial system depends in large part on the government'spragmatism in prudently encouraging lending to targeted sectors,avoiding excessive credit growth and risk-taking, and maintainingbank profitability.

S&P believes that the banking system, as well as the small nonbankfinancial sector, poses a limited contingent liability to thesovereign. Bolivia has several large nonfinancial public-sectorenterprises, but much of their funding comes from government fundsthat had been set aside in earlier years of surpluses.

OUTLOOK

The stable outlook is based on S&P's assumption that thegovernment will seek to sustain GDP growth in the next two tothree years, in large part through investment funded by public-sector savings and by both official and commercial debt. S&P alsoassumes that continued efforts to boost reserves of natural gas toensure the long-term sustainability of energy exports, as well asdomestic industrialization, will slowly begin to show results.S&P expects that the government will manage the financial sectorunder the 2013 financial services law in a manner that avoidsexcessive credit growth, containing the risk of future contingentliabilities.

The availability of ample public-sector savings, plus a low debtburden, provides scope for the government to use countercyclicalfiscal and monetary policies to promote economic growth. S&Passumes that the government will be pragmatic in pursuing itsgrowth strategy so that it does not result in general governmentdebt and external metrics worse than S&P currently forecasts.

Prolonged low international oil prices (which are linked by aformula to the price of Bolivia's natural gas exports), combinedwith failure to boost output of natural gas, could worsen thecountry's long-term export prospects. Under such a scenario,Bolivia's debt burden and external deficits could deterioratebeyond our expectations, unless the government makes adjustmentsto fiscal and other policies. A weaker external profile or higherdebt burden could result in a downgrade.

Successful implementation of the government's growth strategycould generate greater-than-expected fiscal revenue and netexports. Higher hydrocarbon production and a gradualdiversification of the economy would strengthen Bolivia's abilityto withstand volatility in commodity prices. Over time, a betterfiscal performance could reverse the recent decline in fiscalflexibility. That, combined with potentially greater monetaryflexibility, could lead to a higher credit rating.

In accordance with S&P's relevant policies and procedures, theRating Committee was composed of analysts that are qualified tovote in the committee, with sufficient experience to convey theappropriate level of knowledge and understanding of themethodology applicable. At the onset of the committee, the chairconfirmed that the information provided to the Rating Committee bythe primary analyst had been distributed in a timely manner andwas sufficient for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained therecommendation, the Committee discussed key rating factors andcritical issues in accordance with the relevant criteria.Qualitative and quantitative risk factors were considered anddiscussed, looking at track-record and forecasts.

The chair ensured every voting member was given the opportunity toarticulate his/her opinion. The chair or designee reviewed thedraft report to ensure consistency with the Committee decision.The views and the decision of the rating committee are summarizedin the above rationale and outlook. The weighting of all ratingfactors is described in the methodology used in this ratingaction.

S&P also lowered the SACP to 'b+' from 'bb-'. The outlook remainsnegative.

The SACP revision reflects S&P's view that Eletrobras has lesserability to identify and effectively control critical strategicrisks, as seen in the corruption investigations and delays inreleasing its financial statements. S&P then lowered itsmanagement and governance assessment on the company to weak fromfair. Eletrobras failed to release its 20-F filing for 2014 asrequired by the U.S. Securities and Exchange Commission on-or-before the already-extended date of May 18, 2016, given theongoing requests from independent auditors concerning issuesrelated to the corruption investigations. As a result, thenegotiation of its American depository receipts (ADRs) listed inNYSE was suspended in the trading, and the process of delistingwas initiated. The company already announced that it will appealthe decision.

The negative outlook on the company mirrors that on the sovereignand reflects S&P's expectation that Eletrobras will continue toplay an essential role in Brazil's electricity sector, and willtherefore continue to receive government support. Consequently,any rating action on the company will continue to mirror actionstaken on the sovereign.

The negative outlook on the Federative Republic of Brazil reflectsS&P's view that there is a greater than one-in-three likelihoodthat S&P could lower its ratings in the next year.

The province completed the voluntary debt exchange of theoutstanding balance of its TICAP notes for new secured amortizingnotes backed by gas and cannon royalties due 2028 (TICADE). Theprovince exchanged the outstanding amount of $110.4 million of theTICAP notes for the new notes, the equivalent of 69.62% of theTICAP notes' outstanding balance. In addition to the exchange,the province issued $235 million in new TICADE notes. It will usethe proceeds of the new and exchanged notes for debt repayment.

As per S&P's criteria, "Rating Implications Of Exchange Offers AndSimilar Restructurings, Update," published May 12, 2009, it don'tconsider this exchange offer as tantamount to default because S&Pbelieves it doesn't meet the conditions to be considered as such.Neuquen is offering higher interests for the new notes than theexisting ones (8.625% versus 7.875%), an exchange ratio of 1.03per $1,000 tendered notes, plus accrued and unpaid interest withrespect to the 2021 notes. In addition, S&P believes the provinceis taking advantage of market conditions to refinance itsoutstanding debt, following Argentina's curing of the July 2014default on its foreign currency bonds.

Neuquen's TICAP notes are secured by certain oil royalties thatseveral oil producers pay to the province. These royaltiesrepresent 12% of the oil production value at the wellhead of thededicated concessionaries. As part of the exchange, a share ofthe underlying oil royalties previously committed to TICAP will betransferred to TICADE. The secured amortizing notes are Neuquen'sdirect, general, unconditional and unsubordinated obligations.

S&P expects the province to repay the non-tendered part of theeligible notes in accordance with the original terms andconditions and the risks associated with Neuquen's weak creditquality due to substantial economic imbalances in Argentina,including high inflation; the risks associated with thevulnerability of the hydrocarbon industry in the province as wellas the evolution and performance of the royalties or oilproduction; and credit-enhancement protection that includesovercollateralization and a debt service reserve accountequivalent to the next scheduled debt service payment.

In accordance with S&P's relevant policies and procedures, theRating Committee was composed of analysts that are qualified tovote in the committee, with sufficient experience to convey theappropriate level of knowledge and understanding of themethodology applicable. At the onset of the committee, the chairconfirmed that the information provided to the Rating Committee bythe primary analyst had been distributed in a timely manner andwas sufficient for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained therecommendation, the Committee discussed key rating factors andcritical issues in accordance with the relevant criteria.Qualitative and quantitative risk factors were considered anddiscussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflectedin the Ratings Score Snapshot.

The chair ensured every voting member was given the opportunity toarticulate his/her opinion. The chair or designee reviewed thedraft report to ensure consistency with the Committee decision.The views and the decision of the rating committee are summarizedin the above rationale and outlook. The weighting of all ratingfactors is described in the methodology used in this ratingaction.

RATINGS LIST

Ratings Affirmed

Neuquen (Province of) Senior Secured B-

USJ-ACUCAR: Fitch Lowers Issuer Default Rating to 'RD'------------------------------------------------------Fitch Ratings has downgraded the Foreign and Local Currency IssuerDefault Ratings of U.S.J. - Acucar e Alcool S.A. (USJ) to 'RD'from 'C' and the National Scale Rating to 'RD(bra)' from 'C(bra)'.Fitch has also upgraded USJ's USD275 million senior unsecurednotes due 2019 to 'CCC/RR2' from 'C/RR4'.

KEY RATING DRIVERS

The downgrade follows the conclusion of a debt exchange offer forthe USD275 million senior unsecured notes due 2019, withapproximately 90% adhesion. According to Fitch's methodology,this offer is viewed as a distressed debt exchange (DDE). Therating upgrade on the unsecured notes reflects the implicit 75%recovery that followed the 25% haircut taken by the bondholders.

According to the terms of the new notes, the company will have theoption to defer coupon payments in 2016 and 2017 and pay accruedinterest at maturity, which has been extended to 2021 from 2019.If USJ defers coupon payments in 2016 and 2017, the coupon ratewill increase to 12% for these two years and return to theoriginal 9.875% in the following years. New notes will be securedby a fiduciary lien on USJ's Araras mill, lien on land and pledgeof sugar cane.

-- Up to BRL60 million in land sales in the State of Goias have been forecast for 2015/2016.

RATING SENSITIVITIES

USJ's IDRs and National Scale ratings will be downgraded to 'D'and 'D(bra)', respectively, if the company formally files forbankruptcy protection. An upgrade to the 'C' to 'CCC' range isplausible over the short-term, following the conclusion of theDebt Exchange Offer and the consequent improvements in company'sliquidity and capital structure. Upgrades to higher categoriesare not expected given the maintenance of above-average leverageindicators and the operational and financial challengessurrounding the sugar and ethanol sector

FULL LIST OF RATING ACTIONS

U.S.J. - Acucar e Alcool S.A:

-- Foreign and local currency long-term IDRs downgraded to 'RD' from 'C'; -- Long-term National Scale rating downgraded to 'RD(bra)' from 'C(bra)'; -- USD275 million senior unsecured notes due 2019 upgraded to 'CCC/RR2' from 'C/RR4'.

==========================C A Y M A N I S L A N D S==========================

ANTHRACITE BALANCED: Shareholders' Final Meeting Set for May 31---------------------------------------------------------------The shareholders of Anthracite Balanced Company (Discoverer I)Limited will hold their final meeting on May 31, 2016, at9:00 a.m., to receive the liquidator's report on the company'swind-up proceedings and property disposal.

BC's moderate risk appetite, adequate credit policies, and riskmanagement tools contribute to maintain its historic asset qualityamong the best in the region. Although Fitch notes a slightlydeterioration trend in the last two years given the less favorableoperating environment that affected the loan growth, BC's 90-daypast due loan (PDL) stood below 2% at year-end 2015 (YE15) andwere covered by ample reserves (2.4x to PDL). Some of theseratios could continue to deteriorate slightly but Fitch expectsthat it will remain sound and still adequately comparable withregional peers.

In addition, the bank's efficiency and adroit credit riskmanagement that minimizes credit cost have contributed to anoperating profit/risk weighted assets (RWA) of 4% for the pastfive years, although with a clear declining trend. Fitchestimates this ratio should remain strong and above 2% in themedium term considering its robust franchise and diversifiedbusiness model even under moderate growth.

Good profitability and earnings retention underpin BC's capital,which have declined from its peak in 2011 due to BC's solidgrowth, with a Fitch Core Capital (FCC) ratio of 10.1% at YE15,below the direct regional peers median (near to 11%) and lags fromthose of its international peers rated (median of 14.6% for bankswith VR level of 'a-' at Dec. 31, 2015). A strong internalcapital generation (11.9% in average for the last five years) willcontinue to be the main source to maintain its capitalizationratios in line with the past levels, altough Fitch considers thatrecent RWA growth can put some pressure with respect to VR 'a-'rated banks.

In addition, BC's still strong loan loss reserves (LLR) create anadditional cushion as LLR exceed 90-day PDLs in an amountequivalent to about 20.5% of FCC. Under the assumption of 100%reserves coverage over 90-day PDLs, the FCC ratio will be around12%.

The Support Rating of '2' reflects Fitch's view that there is highprobability of support to BC from its parent BBVA (rated'A-' /Outlook Stable), if needed, as BC is considered a strategicsubsidiary of BBVA.

SUBORDINATED DEBT

As per Fitch's criteria, the subordinated note are rated one notchbelow BC's VR, reflecting one notch for loss severity, but nonotches for incremental non-performance risk relative to thebank's VR. In Fitch's opinion, losses for the bondholders wouldonly arise when and if the bank reaches the point of non-viability, which is why these securities receive no equity creditunder the agency's criteria.

CONTINENTAL TRUSTEES (CAYMAN) LTD (CTCL)

Fitch has affirmed the rating of the loan participation notesissued by CTCL at 'BB+'. The notes are secured by the rights to ajunior subordinated loan extended to BC. CTLC's notes, rated fournotches below the bank's VR, have strong equity-like featuresincluding the non-cumulative deferral of the coupons and a deepersubordination. This notching reflects the incremental non-performance risk relative to that captured by the VR and the lossseverity (two notches) given its deeper subordination.

CONTINENTAL SENIOR TRUSTEES (CAYMAN) LTD (CSTC)

Fitch has affirmed the rating of the loan participation notesissued by CSTC at 'A-'. The notes are secured by the rights to asenior loan extended to BC, hence, are equalized with the Long-Term Foreign Currency IDR of BC.

CONTINENTAL SENIOR TRUSTEES (CAYMAN) II LTD (CSTCII)

Fitch has affirmed the rating of the loan participation notesissued by CSTCII at 'A-'. The notes are secured by the rights toa senior loan extended to BC, hence, are equalized with the Long-Term Foreign Currency IDR of BC.

RATING SENSITIVITIES

IDRs, VR, AND SENIOR DEBT

Over the medium term, BC's VR and IDR are highly correlated withthe strength of the operating environment. A positive ratingaction on the bank Foreign Currency IDR is not Fitch base caseconsidering current ratings are one notche above the sovereign anddue to lag of its FCC according to Fitch benchmark ratios.

On the other hand, BC's Local Currency IDRs could benefit from asignificant improvement of its parent's ability to providesupport, as evidenced by BBVA's IDR.

Significant Deterioration of its Performance: BC's VR and IDRswould be pressured, individually or collectively, by a sharpdeterioration of the bank's performance or a larger than expecteddecline in asset quality that would erode the capital/reservescushion (operating profit/RWA below 2%, 90-day PDLs above 3%, andFCC below 9.5%).

SUPPORT RATING

The support rating of BC could be revised upward if the parentrating is materially further upgraded (at least two notched fromcurrent BBVA Spain 'A-' IDR).

SUBORDINATED DEBT

The subordinated notes' rating is sensitive to any changes in BC'sVR and will typically be rated one notched below BC's VR.

EVENING STAR: Shareholder to Hear Wind-Up Report on June 13-----------------------------------------------------------The shareholder of Evening Star PTC Limited will hear on June 13,2016, at 11:00 a.m., the liquidator's report on the company'swind-up proceedings and property disposal.

GLG EMERGING: Members' Final Meeting Set for June 2---------------------------------------------------The members of GLG Emerging Currency and Fixed Income Fund willhold their final meeting on June 2, 2016, at 11:00 a.m., toreceive the liquidator's report on the company's wind-upproceedings and property disposal.

MASTER INTERNATIONAL: Shareholders' Final Meeting Set for June 8----------------------------------------------------------------The shareholders of Master International Co., Ltd. will hold theirfinal meeting on June 8, 2016, at 10:00 a.m., to receive theliquidator's report on the company's wind-up proceedings andproperty disposal.

DOMINICAN REPUBLIC: Manufacturing Declines Slightly in April------------------------------------------------------------Dominican Today reports that the monthly manufacturing index(IMAM) prepared by the Dominican Republic Industries Association(AIRD) declined slightly from 59.9 in March to 58.9 in April.

The activity rose from March 2016 to April 2016 on productionvolume and suppliers delivery time, while a turnover, employmentand inventory of raw materials slightly decreased, according toDominican Today.

Production volume posted the highest increase compared with theprevious month, from 63.5 in March to 66.4 in April, the reportnotes.

The index also reveals that the segment of major industries postedthe highest increase in manufacturing activity, from 59.5 to 66.8,while the micro and small industries slightly decline in the indexover the previous month, the report adds.

As reported in the Troubled Company Reporter-Latin America onDec. 3, 2015, Fitch Ratings affirmed the Dominican Republic'slong-term foreign and local currency Issuer Default Ratings (IDRs)at 'B+'. The Rating Outlooks on the long-term IDRs are revised toPositive from Stable. The issue ratings on the DominicanRepublic's senior unsecured foreign and local currency bonds areaffirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and theshort-term foreign currency IDR at 'B'.

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GRENADA ELECTRICITY: Warns of Threat to Electricity Reliability---------------------------------------------------------------Caribbean360.com reports that Grenada Electricity Services Ltd.(GRENLEC,) the sole provider of electricity in Grenada, Carriacouand Petit Martinique, has claimed that the country's new energylegislation will threaten the electricity sector's reliability andcosts.

It has also claimed the Electricity Supply Bill and PublicUtilities Regulatory Commission Bill are politically motivated,according to Caribbean360.com.

But government says both claims are far from the truth, notesCaribbean360.com.

In a statement, GRENLEC said the Bills unilaterally scrap thecurrent legislative and regulatory framework that has successfullyallowed Grenada to enjoy more than 20 years of world-classelectricity service and growth, the report relays.

But Minister for Health and Social Security issued a statement,saying he was appalled at GRENLEC's comments.

"I take issue with that. In fact, I take offence to that. This isbeing motivated in the best interest of our people of Grenada.Unlike the members of GRENLEC who have framed this, we have aresponsibility to the people, not to shareholders," the ministersaid, the report notes. "It is not an acceptable internationalnorm to have a legislated monopoly," he added.

Mr. Steele said that, for years, Grenada has not been able toaccess any of the benefits of being a member of the InternationalRenewable Authority, because of the legislative monopoly ofGRENLEC, which has been preventing government from providingelectricity to less fortunate people, or to itself, without firstseeking the permission of the private entity, the report notes.

The minister says, with the new legislation, the aim of governmentis not to terminate the operations of GRENLEC, but to bringgreater competition into electricity market for the benefit of thepeople, the report relays.

"It has nothing to do with whether the private entity is welcomedor continues to be welcomed. What we seek to do is create anenvironment . . . . it should not be as a result of a legislation.It should be as a result of fair competition and fair play," hesaid, the report notes. "As a responsible government we not onlyhave a right to provide that type of environment, we have anobligation to provide that type of environment," he added.

The Lower House of Parliament on May 11 approved the measures thatthe Government said will lead to a comprehensive reform of theelectricity sector by opening the door for other investors togenerate electricity using renewable energy resources, the reportrelays.

The Upper House will make a final decision on the Bills in anupcoming sitting, the report adds.

Mr. Phillips says debt reduction is a key element of the economicprogram and based on the new fiscal policy paper, there are noexplicit plans to address the issue, according to RJR News.

"We had projected that we would reach a debt reduction target of120 per cent debt to GDP by the end of this fiscal year. TheGovernment in its fiscal policy paper has said we will not reachthat, and that the debt will remain constant this year. . . .Over the course of the next three to four years, there will be aslippage of about eight per cent debt to GDP on this debtreduction target," Mr. Phillips said, the report notes.

At a press conference the former Finance Minister said this is acause for concern, the report relays. "There may be reasons forit but the Minister of Finance said nothing about it and so we areleft to feel that this might be just an attempt to ignore thesehard realities. We need to have a better statement of purpose fromthe government in this regard," he added.

* * *

As reported in the Troubled Company Reporter-Latin America onJuly 29, 2015, Standard & Poor's Ratings Services assigned its 'B'issue rating on Jamaica's up to US$2 billion in bonds issued intwo tranches. The first tranche is for up to US$1,350 million duein 2028. The second tranche is for up to US$650 million due in2045. The government will use the proceeds to purchase debt thatJamaica owes to Venezuela as well as to finance the government's2015/2016 budget.

JAMAICA: Urged to Review CET Charged on Imported Oil----------------------------------------------------RJR news reports that Dennis Chung, CEO of the Private SectorOrganisation of Jamaica (PSOJ), is calling for the government toreview the Common External Tariff (CET) charged on oil importedfrom outside the region.

Mr. Chung said the government must either remove the tariff orintroduce the CET on oil from Trinidad and Tobago, according toRJR News.

* * *

As reported in the Troubled Company Reporter-Latin America onJuly 29, 2015, Standard & Poor's Ratings Services assigned its 'B'issue rating on Jamaica's up to US$2 billion in bonds issued intwo tranches. The first tranche is for up to US$1,350 million duein 2028. The second tranche is for up to US$650 million due in2045. The government will use the proceeds to purchase debt thatJamaica owes to Venezuela as well as to finance the government's2015/2016 budget.

BCP's local currency IDR remains one notch above Peru's sovereigndue to its very strong credit profile. Its VR reflect the bank'sadequate loss absorption capacity, given a dominant franchise,high and sustained profitability and sound credit risk management,together with a strong liquidity and stable and diversifiedfunding. Fitch believes the entity will be able to withstand anyoccasional deterioration in the operating environment.

Sound risk management policies and diversification allowed BCP tomaintain a strong asset quality - 90-day past due loan (PDL) below2% for more than five years, altough with a slight increasingtrend - and were covered by ample reserves (2.4x to PDL) at year-end (YE) 2015, one of the best among peers in the region. At thesame time, the bank's diversified business model and resilientmargins, improving efficiency and moderate credit cost resulted ina consistent operating profit to risk weighted assets (RWA) at3.5% in the last five years.

BCP's Fitch core capital (FCC) at 11.1% at YE 2015 comparesadequately with that of its regional peers but still lags those ofits international peers rated (median of 14.6% for banks with VRlevel of 'a-' at Dec. 31, 2015). Ample and sustainedprofitability and earnings retention underpin BCP's capital whichshould be viewed in the light of its ample reserve coverage(excess reserves attained about 20% of FCC).

Fitch notes that the structural dollarization of the Peruvianbanking system creates challenges for banks as the dollarstrengthens and expectations for the depreciation of localcurrency persist. The challenge for banks has mainly come in theform of asymmetric liquidity (ample in dollars, tight in localcurrency) and some pressures on capital. The bank's funding isample, well diversified and low cost but the core Fitch's metricof loans / deposits ratio is been increasing the latest two yearsand above than regional peers (104.9% compared to 98.8% for theregion sector median at YE 2015).

While the bank's strength allows it to face these challengesconfidently, the structural currency mismatch will take some timeto improve. Fitch will continue to monitor the evolution of thede-dollarization efforts and the eventual introduction ofstructural, long term solutions.

SUPPORT RATING AND SUPPORT RATING FLOOR

BCP's 34% market share in deposits and its outsize presence in allbusiness segments make it a crucial part of Peru's financialsector. Support from the government should be forthcoming in caseof need; Peru's ability to provide such support is reflected inits Sovereign Rating ('BBB+/A-') and underpins BCP's Support andSupport Rating Floor ratings.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

BCP's subordinated bonds are plain vanilla and lack the featuresthat would earn them equity credit following Fitch's criteria.Their probability of non-performance is equivalent to that ofBCP's senior bonds, but they would entail a higher loss severityin case of default due to their subordinated nature. Hence, theyare rated only one notch below the bank's VR.

BCP's junior subordinated bonds, rated five notches below thebank's VR, have very strong equity-like features including thenon-cumulative deferral of the coupons and a deeper subordination.This notching reflects the incremental non-performance riskrelative to that captured by the VR and the loss severity (twonotches) given its deeper subordination.

RATING SENSITIVITIES

IDRs, VR, AND SENIOR DEBT

The Stable Outlook reflects Fitch's belief that the bank's strongbalance sheet and performance are resilient to eventual downturnsand even though some credit metrics may see a slightdeterioration, they are likely to remain compatible with itscurrent rating.

Over the medium term, BCP's VR and IDRs are highly correlated withthe operating environment. A positive rating action on the bankIDRs is not Fitch base case considering current ratings are onenotche above the sovereign and due to lag of its FCC according toFitch benchmark ratios.

The bank's IDRs are driven by its VR and standalone strength.They reflect the bank's information-intensive risk managementframework, strong underwriting and effective collections efforts.

Interbank's loan quality indicators showed modest deteriorationover the course of 2015, primarily in its credit card and payrollloan portfolio affected by slower economic growth. Interbank'sloan quality indicators continued to compare favourably with thefinancial system as a whole, despite the bank's relatively greaterretail orientation. Past due loans greater than 90 days (90-dayPDLs) rose to 2.2% at year-end (YE) 2015 from 1.9% the year prior,mitigated by relatively low borrower concentration levels andreserve coverage of 209%. In addition, the bank reportedsubstantial gains in reducing loan dollarization to 29.2% from37.4% of net loans during 2015.

Ratings also reflect Interbank's consistently strongprofitability, benefitting from stronger growth in higher-marginproducts, a larger contribution from fee income, and betteroperational efficiency. Notwithstanding a disproportionate growthin cash and other non-earning assets, operational profitabilityincreased to 3.2% in 2015 from 3.1% the year prior. In addition,Interbank's operating expenses have consistently trended downwardsto 3.7% of average assets in 2015 compared to a rate of 6.4% in2008 due in part to increased focus on digital service channels.

Interbank's capital is adequate but was slightly pressured in 2015due to the appreciation of U.S. dollar denominated assets. Fitchcore capital remained stable at 9.6% of risk weighted assets at YE2015 and its regulatory capital of 15.5% compared favourably withthe banking system average (14.2%). Fitch sees the bank's cushionagainst unexpected losses also considering its large loan lossreserves (2.8% of total assets) as well as USD200 million in TierI compliant junior subordinated debt and USD518.7 million in Tier2 compliant subordinated debt equivalent.

The bank's funding and liquidity profile marks a key strength.Interbank has made significant gains in attracting a stable,retail deposit base, ranking fourth in customer deposits with amarket share of 12%. Like the financial system as a whole,Interbank's loan de-dollarization has outpaced its deposit de-dollarization. The central bank has encouraged banks to de-dollarize by facilitating long-term currency swaps. In Fitch'sopinion, the central bank has the capacity and propensity tocontinue providing these facilities over the longer term, givenPeru's strong external liquidity and large FX reserves, as well asthe moderate size of private credit (44.8% of GDP at March 2016).In terms of liquidity, Interbank manages to conservative liquiditylimits in both currencies, comparing favourably to the system as awhole.

SUPPORT RATING AND SUPPORT RATING FLOOR

Interbank's Support Rating and Support Rating Floor reflectInterbank's sizeable market share in deposits, its presence in allbusiness segments, as well as the Republic of Peru's capacity toprovide support should it be required.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Interbank's subordinated bonds are plain vanilla and are notassigned equity credit under Fitch's criteria. In Fitch'sopinion, their probability of non-performance is equivalent tothat of Interbank's senior bonds but, they would entail a higherloss in case of default due to their subordinated nature. Hence,they are rated only one notch below the bank's VR.

Interbank's junior subordinated bonds, rated four notches belowthe bank's VR, have non-cumulative deferral of the coupons and adeeper subordination. This notching reflects the incremental non-performance risk relative to that captured by the VR and the lossseverity (two notches) given its deeper subordination.

RATING SENSITIVITIES

VRs, IDRS, AND SENIOR DEBT

Given its current rating, there is little upside potential forInterbank's VR and IDRs. Interbank's ratings could be downgradedif a severe decline in asset quality (PDLs above 4%) or weakprofitability erode its capital (FCC below 9%) and reservecushion.

SUPPORT RATING AND SUPPORT RATING FLOOR

Interbank's Support Rating (SR) and Support Rating Floor (SRF)could be affected if Fitch changes its view of Peru's ability orwillingness to support the bank.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The subordinated and junior subordinated debt ratings would movein line with Interbank's VR.

"Tonight we introduced legislation to responsibly address thecrisis in Puerto Rico," Mr. Bishop said in a statement, accordingto Morning Consult. "The revised bill incorporates technicalrefinements and input from all stakeholders. Any future changeswill be done in public committee meetings," Mr. Bishop added.

Some stakeholders may consider the revisions to be significant.According to a Natural Resources Committee summary, the newmeasure would block a new Labor Department overtime rule fromapplying to Puerto Rico, the report notes.

The changes also include language that clarifies the fiscaloversight board's authority to protect prioritized payments tobondholders, the report relays. Those payments are required bythe commonwealth's constitution, the report notes.

"PROMESA creates a firewall between the constitutionally protectedcreditor hierarchy and pensions in the development of FiscalPlans," the committee summary stated, referring to the bill by itsacronym, the report discloses.

The legislation also bars Puerto Rico's governor "from executiveany budgetary adjustment" between the enactment of the bill andthe establishment of its oversight board, and has language to"reiterate the promotion of voluntary restructuring agreements andexplicitly honor voluntary agreements that are already in place,"the summary said, the report says.

Talks between House lawmakers and the Obama administration lastedmore than a week, largely due to hangups over language concerningthe oversight board's composition and the prioritization ofcreditors that had to be hashed out between the White House, theTreasury Department and Speaker Paul Ryan's office, the reportnotes.

The Treasury Department has called for language that wouldprioritize pensioners over creditors, but Republicans' rejectionof that language was non-negotiable, the report relays.

The report says that the new bill retains provisions, with somealterations, that some opponents have called a form of "SuperChapter 9" bankruptcy. That language, which gives the federaldistrict court in Puerto Rico "personal jurisdiction over anyperson or entity," remains in section 306 (c) of the newlegislation, the report notes.

Daniel Hanson, an analyst for the Washington-based broker-dealerHeight Securities LLC, said a provision that separatesconstitutionally guaranteed debts from other claims like pensionsin restructuring votes would help the bill gain more support,notes the report.

"This version will pass," he said in an email to Morning Consult.

The Natural Resources summary addresses the Chapter 9 accusations,as well as concerns that the bill has implications of "contagion"to other debt-strapped jurisdictions beyond Puerto Rico, whoserelationship with Congress is formed under the Territorial Clauseof the U.S. Constitution, the report notes.

The new measure omits controversial provisions that would haveallowed the transfer of federal land on the island of Vieques, andit makes complex alterations to a previous provision that wouldhave allowed Puerto Rico's governor to lower the minimum wage to$4.25 an hour, the report discloses.

Pedro Pierluisi, Puerto Rico's non-voting representative in theU.S. House, said the new bill is closer to earning his support,which would be important to attract Democratic support for themeasure, the report relays.

"Like any product of bipartisan compromise, it contains provisionsI oppose or view as unnecessary, and it is my hope theseprovisions can be modified or removed as the legislative processmoves forward," he said in a statement, the report notes."However, the heart of the bill -- the debt restructuring sectionand the oversight board section -- now comes far closer to meetingthe stringent criteria I established in order for the legislationto earn my support."

As reported in the Troubled Company Reporter-Latin America on Dec.28, 2015, Moody's Investors Service has downgraded $1.09 billionof Puerto Rico appropriation bonds issued by the Public FinanceCorporation (PFC) to C from Ca, while maintaining other ratingsassigned to the US territory's debt.

ST. VINCENT: Moody's Changes Outlook on B3 Gov't. Rating to Stable------------------------------------------------------------------Moody's Investors Service changed the outlook on the Government ofSt Vincent and the Grenadines' B3/NP issuer and B3 government bondratings to stable from negative and affirmed the ratings.

Moody's says, "the rating action reflects our expectation thatfaster growth and lower fiscal deficits will keep St Vincent'sdebt metrics consistent with B-rated peers. Real GDP will likelyincrease closer to 2% this year and next, after averaging only0.5% per year from 2010 to 2015. We forecast debt will end at 260%of revenues in 2016, similar to the 234% median for ratings peers.

"The stable outlook reflects our view that while debt will likelycontinue to rise in the next two years, the increase will bemoderate and debt affordability will continue to be supported bylow interest funding from multilateral and bilateral creditors."

The local currency ceiling remains unchanged at Ba3. The foreigncurrency bond and bank deposit ceilings also remain unchanged atBa3/NP.

RATINGS RATIONALE

RATIONALE FOR AFFIRMATION OF ST VINCENT'S B3 RATING

After years of weak economic growth St Vincent is poised for amodest recovery, with real GDP forecast to grow 2% on averageuntil 2018. St Vincent, like most other Caribbean nations, ishighly dependent on tourism, which represents almost 25% ofeconomic activity, either directly or indirectly. Most tourism isfrom the US and with the recent economic recovery in the US,growth has also picked up in St Vincent. Last year stay-overtourist arrivals rose 6.6% relative to 2014, compared with anaverage increase of only 0.1% since 2010.

Moody's says, "further growth may result from the opening of a newinternational airport. In construction since 2008, lack ofnecessary funding has delayed the start of operations of Argyleinternational Airport. Since currently there are no direct flightsto the capital city of Kingstown from North America or Europe, thenew airport will likely lead to an increased flow of tourists, adevelopment we anticipate will have a multiplier effect on theeconomy.

"Economic growth should help limit the increase in the debtburden, which remains on par with peers but has been rising inrecent years. Debt to GDP will end at 72% this year, compared to60% in 2012. Low interest funding from developments banks hashelped keep interest payments stable, despite the increase indebt. We estimate interest payments will represent 9% of revenuesin 2016, a similar percentage as in 2012, and lower than the B-rated median of 10%."

St Vincent's B3 rating remains constrained by its small andundiversified economy. The country is highly susceptible toweather-related shocks and it relies heavily on grants andmultilateral lending for its funding needs. Fiscal flexibility islimited as well as overall policy effectiveness reflecting a weakinstitutional framework and lack of timely and adequatemacroeconomic data.

RATIONALE FOR ASSIGNING A STABLE OUTLOOK

Moody's says, "the stable outlook reflects our expectation thatthe fiscal deficit will remain moderate over the next two yearslimiting the increase in the debt burden. Fiscal deficits averaged3.5% of GDP since 2011 but that should fall to 2.5% in 2016, onthe heels of increased tax compliance efforts and faster growth.The government aims to reach fiscal results close to balance by2018, an ambitious target which we anticipate will be extremelyhard to reach given historical performance."

WHAT COULD MOVE THE RATING UP/DOWN

Moody's says, "we see limited potential for upward rating changesin the immediate future. Faster growth driven by the completion ofArgyle International Airport and the expected associated increasein FDI in the tourism sector would be credit positive andsupportive of the rating. A significant strengthening of thegovernment's balance sheet through a marked reduction in debtmetrics or diversification of funding sources would place upwardpressure on the sovereign's rating. A significant reduction inexternal vulnerabilities, particularly a drop of the currentaccount deficit which reached almost 30% of GDP last year, wouldalso create upward pressure."

A further deterioration of the government balance sheet, theassumption of contingent liabilities coming from state ownedcompanies, or increased commercial borrowing to finance potentialcost overruns related to the Argyle airport would be creditnegative. Downward pressure on the rating would also arise ifaccess to grants and concessional finance were to deteriorate, orif a large external shock - such as a major hurricane - were tojeopardize balance of payments sustainability.

Default history: No default events (on bonds or loans) have beenrecorded since 1983.

On 17 May 2016, a rating committee was called to discuss therating of the St. Vincent and the Grenadines, Gov-t of. The mainpoints raised during the discussion were: The issuer's economicfundamentals, including its economic strength, have materiallyincreased. The issuer's governance and/or management, havedecreased. The issuer's fiscal or financial strength, includingits debt profile, has not materially changed.

=================X X X X X X X X X=================

* BOND PRICING: For the Week From May 16 to May 21, 2016--------------------------------------------------------

Monday's edition of the TCR-LA delivers a list of indicativeprices for bond issues that reportedly trade well below par.Prices are obtained by TCR-LA editors from a variety of outsidesources during the prior week we think are reliable. Thosesources may not, however, be complete or accurate. The MondayBond Pricing table is compiled on the Friday prior to publication.Prices reported are not intended to reflect actual trades. Pricesfor actual trades are probably different. Our objective is toshare information, not make markets in publicly traded securities.Nothing in the TCR-LA constitutes an offer or solicitation to buyor sell any security of any kind. It is likely that some entityaffiliated with a TCR-LA editor holds some position in theissuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies withinsolvent balance sheets obtained by our editors based on thelatest balance sheets publicly available a day prior topublication. At first glance, this list may look like thedefinitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historical costnet of depreciation may understate the true value of a firm'sassets. A company may establish reserves on its balance sheet forliabilities that may never materialize. The prices at whichequity securities trade in public market are determined by morethan a balance sheet solvency test.

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